Food delivery companies are crushed again by worries about EU regulations

The food delivery sector was disrupted again on Monday, with expectations that the European Commission will issue new regulations to treat workers like employees rather than contractors.

Deliveroo
ROO,
-7.83%

8% off as Delivery Hero
DHER,
-6.69%

and Just Eat Takeaway.com
TKWY,
-5.98%

GRUB,
-4.29%

dropped by 6%.

Analysts at Citi said Deliveroo would be most affected by the rule proposal, which the Financial Times reports could be published as early as Wednesday. They say Deliveroo’s gross margins will be between 12% and 18%. The Delivery Hero’s limited European presence implies margins of 2% and 3%, respectively, and the majority of Just Takeaway’s European riders have already been recruited, the analysts added. Analysts added.

Stoxx Europe 600 wider
SXXP,
+0.63%

was trading higher on Monday, as rising oil prices boosted energy producers including TotalEnergies
TTE,
+ 2.73%

and Royal Dutch Shell
RDSB,
+ 2.31%
.

Source link Food delivery companies are crushed again by worries about EU regulations

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